Common currency rallies, getting closer to last week’s peak

12:03 11.06.2018

On Monday, the common currency managed to ascend, getting closer to the previous week's maximum for three weeks before the ECB gathering to be held this week. The evergreen buck rallied versus the major Japanese currency, as traders neglected geopolitical risks for a while.

The currency pair EUR/USD pair soared by 0.34% coming up with 1.1810. For the last week, this currency pair tacked on by 0.92%.

Demand for the euro is still high ahead of the ECB gathering on Thursday. Financial analysts foresee that as a result of this gathering, the European Central Bank is going to signal about the exact timing of completion of its financial incentive initiative.

The evergreen buck managed to win back the previous dive versus the Japanese yen. The currency pair USD JPY soared by 0.41% being worth 109.99 after the minimum of 109.31 observed during the night trading.

At the weekend, market participants generally neglected geopolitical risks during the G-7 summit that was held in Canada.

US leader Donald Trump didn’t want to have a communiqué signed following the G7 summit. What’s more - he had a conflict with Canadian Prime Minister Justin Trudeau, accusing him of spreading fake statements. Moreover, he didn’t like that the rest of the world treats the United States as a big piggy bank.

Market participants are hoping for a big breakthrough before the historic negotiations between US leader and North Korean dictator Kim Jong-no in Singapore burst out.

The US dollar index, employed to estimate the purchasing power of the American currency versus the group of six key currencies, dipped by 0.14% trading at 93.42.

On Thursday, the major US currency rebounded from its unexpected dive following dismal economic data that sparked fears about the strength of the American economy and also backed the Fed’s intention to leave rates on hold in the nearer future…

On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…

On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…